First Time Homeowners: Loan Programs
Dreaming of becoming a homeowner? It’s not too far off in the distance as "mortgage rates are extremely low" (Houston Culture Map, 2020).
Homeownership is an exciting process however can be consfusing when it comes to the finance portion. There are different mortgage programs however they’re are all dependent on your financial status and the amount you are borrowing.
Here are the most common home loans:
Conventional loans are not backed by a government agency. This is the best option for borrowers who have a solid credit score with little debt. With this type of loan, you could avoid having to pay a private mortgage insurance (PMI) if you provide a 20% or more down payment. However, this option will allow you to make a minimum down payment of 3% if you choose.
VA home loans are for America Veterans and their family provided by private lenders. Typically, private mortgage insurance and down payments are not required to apply but a funding fee may be charged. Learn more about VA Home loans here.
FHA is insured by the Federal Housing Administration. This loan is best suited for first-time home buyers who have little savings or credit score challenges. Learn more here.
Get started on how to own a First America Home.